Canadian Dollar and US Dollar FX Morning Update May 17, 2013
USD/CAD Open: 1.0251-1.0253 Overnight Range: 1.0181-1.0259
The Canadian dollar was volatile in overnight trading. Oil is at $95.85 and gold is at $1,376. NY futures are higher. Today, Canada releases CPI data and the US releases consumer sentiment and leading indicator data.
The short term Canadian dollar technicals are bearish. For today, USD resistance is at 1.0350 and 1.0450. Support is at 1.0150, 1.0010, and 0.9950.
The Canadian dollar went for a wild ride overnight and this morning and has dropped significantly vs. the US dollar. This morning, Canadian inflation data showed that consumer prices gained at the slowest rate since late 2009. This likely keeps the Bank of Canada on hold for some time as there is virtually no inflation threat. As a result, lower expected interest rates are negative for the Canadian dollar as money typically flows to higher yielding currencies.
Today’s Suggested Range USD/CAD: 1.0250 – 1.0350
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | May 17, 2013 | Daily Update |
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